Many foreigners are now turning to Malta to invest in real estate. If the archipelago is your destination, how to buy?
The real estate market in Malta is like a charm. Indeed, foreigners are delighted to be able to become owners, thanks to low prices and interest rates, or less restrictive height requirements.
So, whether you choose to invest in the island of Malta, Gozo or Comino, rest assured to buy property in Malta that you will find all the ingredients for a peaceful and dynamic daily life at once, warm, rich, and especially far from the greyness that it can be found in major cities elsewhere in Europe.
Where is the ideal accommodation in Malta?
The Maltese archipelago is broken down into three main islands, two of which are more likely to welcome you. Thus, we find Malta, the main island, the economic and cultural lung of the whole. Valletta (the capital), Sliema, Saint Julian’s, Maraskala, Marsaxlokk and Mellieha are the most populous and dynamic cities of this part of the archipelago.
Otherwise, you can turn to Gozo, a less developed part of the archipelago, known for its rural and cultural atmosphere. Very popular with retirees, Gozo’s capital Victoria (also known as Rabat), and has two points of interest in terms of real estate purchase: Masalforn and Xlendi.
You will understand, it would be difficult to advise a specific place to make a real estate purchase in Malta, the ideal is to get there, to take the temperature and most importantly, to reconcile his desires and needs.
How to find the property of your dreams in Malta?
The first channel you can turn to is the Internet. For research in English, type the keywords “real estate malta”. You will be surprised by a large number of opportunities awaiting takers.
Otherwise, for more security and serenity, rely on the expertise of a real estate agent, at least, if you’re there. Do not forget to make a list of your expectations/requirements regarding the type of property, budget, pool, garden, school, etc. Do not be afraid to go to several agencies before stopping on a person: the one with which the communication will be fluid, clear, fast, but above all very effective.
Need a property acquisition license in Malta or not?
One of the peculiarities of Maltese real estate concerns the permit to purchase a property in Malta, called the Acquisition of Immovable Property Permit (AIP). Indeed, if it is relatively easy to buy real estate in Malta, you should know that:
The European citizen who has lived in Malta for 5 years without interruption enjoys the same rights as the Maltese as to the purchase of real estate: he does not need a permit
the European citizen who has not lived in Malta for 5 years without interruption must apply for an acquisition permit, and buy a property considered as a second home in certain demarcated areas (Special Designated Areas – SDA)
the citizen of a third country – irrespective of his residency status in Malta – must apply for an acquisition permit.
If you are required to have an AIP to buy in Malta, check with the relevant authorities or a real estate agency for zones reserved for foreign investors.
Capital Transfer Duty Department
46, Monti di Pieta Buildings, Merchants Street, Valletta
Tel. : 356 2299 8171/356 2299 8136/356 2299 8106/356 2299 8207
When the big day arrives, the day you are going to become the owner in Malta, you will have to respect the buying process, which is as follows:
The visit went well, make an offer, or discuss the sale price with the seller, preferably in the presence of the real estate agent
signing of the promise of sale, legal document that contains the details of the sale, the amount paid for the deposit (10% of the sale price), the price paid for the tax on real estate transactions (stamp duty in jargon – 3.5% on the first 150 000 euros of the price of the property in Malta and 5% on the rest of the amount, if it exceeds 150 000 euros), and the conditions under which will be made the payment of the totality the selling price.
Reconciliation with a notary who will verify the legality of the transaction (of the sale as of the purchase), the title deed (to detect mortgages or debts related to the property being sold)
definition of a signing date of the deed of sale (in the bank or at the notary’s); this will be an opportunity for you, the buyer, to transfer the amount corresponding to the price of the property, to the seller, to pay the fees related to the stamp duty (Commissionner of Inland Revenue), the agency fees (divisible between the buyer and the seller, and generally corresponding to 5% of the price of the property in Malta sold), as well as the notary’s fees (from 1% of the purchase price).